I am 30 years old and my husband is disabled and unable to work, so I am the one income for our family. (We do not have any children.) Due to a number of factors, I am considering going back to school and starting a second career that is more stable and fulfilling.
Our current assets are as follows:
- $32,000 Cash
- $72,000 Primary residence (mortgage paid in full)
- $40,000 Investment property (owe $16,000 in personal loan)
- $70,000 Investment account
- $16,400 Roth IRA
- $12,000 Simple IRA
(The only debt we have is the $16,000 personal loan. No car payments, no mortgage payments, no credit card debt, no school loans, etc.)
Cost of Education
I estimate that the cost of my education would be around $37,000 for tuition, fees, etc. I also expect I would need to quit my current job for one year to study, so we would also need money to live on during that time, a minimum of $30,000.
Possibilities for Financing Education
I would not be opposed to taking a student loan to finance my education and I would consider working part-time while in school, although the program is intensive and I would rather be able to not work and focus on my studies.
I also believe there are opportunities where my future employer would reimburse me for some/all of my tuition expenses. (I'm considering becoming an RN and some hospitals offer this type of program.)
We are financially stable at this point and I don't want the costs of my education and being out of work to study for a year to disadvantage us in the long run.
With all of that background, that brings me to my question: What is the most financially sound way for me to finance my education? Which would be a financially better move - taking a loan to pay for school or using money from our investment account to pay for school? Or would other options be better such as a home equity loan or selling our investment property?
tl;dr I want to finance the education for my second career. We are financially stable now. Should I borrow money or pay out of our current investments?